What are the components that comprise a sustainable competitive advantage for a firm?
Four components comprise a sustainable competitive advantage. According to Hitt, Ireland, & Hoskisson (2009), the criteria is as follows:
- Valuable: allow the firm to exploit opportunities or neutralize threats in its external environment
- Rare: capabilities that few, if any,competitors possess
- Costly to imitate: capabilities that other firms cannot easily develop.
- Nonsubstitutable: capabilities that do not have strategic equivalents (p. 82).